MoreOctober 19, 2011
MAYOR VILLARAIGOSA SIGNS JOB-CREATING LOCAL PREFERENCE ORDINANCE
Ordinance Will Create LA Jobs by Leveling Playing Field for Local Businesses
LOS ANGELES - Mayor Antonio Villaraigosa signed the job-creating Local Preference Ordinance into law on Wednesday, giving local businesses an 8 percent competitive advantage when they bid on City contracts.
“We are not waiting for Washington to create jobs,” said Mayor Villaraigosa. “The Local Preference Ordinance uses our own purchasing power to put people back to work. This job-creating measure helps level the playing field, making it possible for local businesses to compete more effectively for City contracts.”
The Local Preference Ordinance, spearheaded by Mayor Antonio Villaraigosa, is intended to spur the local economy and create local jobs. The Ordinance is expected to help local businesses compete for City contracts by leveling the playing field. The ordinance will give businesses in Los Angeles County an 8 percent competitive advantage in bids and proposals for City contracts.
The Local Preference Ordinance was developed last year by the Mayor’s Office of Economic and Business Policy as a way to create jobs in Los Angeles. In a 12-0 vote, the Los Angeles City Council approved the Ordinance on Friday, October 14, 2011.
In 2010-2011, the City of Los Angeles contracted for goods and services (including construction) in excess of $2.4 billion. A review of spending by eight major LA City Departments in 2008-09 showed that only 15 percent of City contracts were going to businesses located in the City of Los Angeles. This Ordinance levels the playing field so that local business can compete for City contracts.
The Local Preference Ordinance applies to all General Fund departments.
On Friday, Mayor Villaraigosa wrote to the heads of the six departments beyond the reach of the ordinance – the Department of Water & Power, the Port of Los Angeles, Los Angeles World Airports, Recreation and Parks, the Community Redevelopment Agency, and the Los Angeles Public Library -- urging them to adopt an 8 percent competitive advantage for local businesses.
The Local Preference Ordinance is part of an overarching mayoral strategy to get contracts and jobs to local companies and local residents. Local hire agreements that require at least 30 percent of the workers to come from the City of Los Angeles have been adopted at the Department of Public Works, the Community Redevelopment Agency, the Port of Los Angeles, and Los Angeles World Airports. Under the mayor’s leadership, a “Targeted Hire Strategy” is being negotiated at the Metropolitan Transportation Authority. This strategy would direct jobs to those areas with extremely high unemployment.
The Ordinance will take effect on Nov. 24, 2011. All City contracting opportunities are posted on the City’s Business Assistance Virtual Network (www.labavn.org).
CONTACT:
Teddy Davis
213-978-0741